WVC 18 - 9 D- 8
§18-9D-8. Use of proceeds of bonds; bonds exempt from taxation.
(a) The maximum aggregate amount of bonds outstanding at any
time, for which the moneys in the School Building Debt Service Fund
or the Excess Lottery School Building Debt Service Fund are to be
pledged, is $500 million; however, any amount of bonds for which
moneys have been deposited in a sinking fund, reserve fund or other
fund established to provide payment of principal or interest on the
bonds shall be excluded from the calculation of the maximum
aggregate amount of bonds outstanding at any time. The issuance of
revenue bonds under the provisions of this article shall be
authorized, from time to time, by resolution or resolutions of the
School Building Authority, copies of which shall be provided to the
Governor, the President of the Senate and the Speaker of the House
of Delegates within five days of their approval, which shall set
forth the proposed projects authorized in accordance with the
provisions of section sixteen of this article and provide for the
issuance of bonds in amounts sufficient, when sold as provided in
this section, to provide moneys considered sufficient by the
authority to pay the costs, less the amounts of any other funds
available for the costs or from any appropriation, grant or gift
for the costs: Provided, That bond issues from which bond revenues
are to be distributed in accordance with section fifteen of this
article for projects authorized pursuant to the provisions of
section sixteen of this article are not required to set forth the
proposed projects in the resolution. The resolution shall prescribe the rights and duties of the bondholders and the School
Building Authority and, for that purpose, may prescribe the form of
the trust agreement referred to in this section. The bonds may be
issued, from time to time, in such amounts; shall be of such
series; bear such date or dates; mature at such time or times not
exceeding forty years from their respective dates; bear interest at
such rate or rates; be in such denominations; be in such form,
either coupon or registered, carrying such registration,
exchangeability and interchangeability privileges; be payable in
such medium of payment and at such place or places within or
without the state; be subject to such terms of redemption at such
prices not exceeding one hundred five percent of the principal
amount of the bonds; and be entitled to such priorities on the
revenues paid into the fund pledged for repayment of the bonds as
may be provided in the resolution authorizing the issuance of the
bonds or in any trust agreement made in connection with the bonds:
Provided, however, That revenue bonds issued on or after January 1,
1994, and prior to January 1, 2008, which are secured by lottery
proceeds from section eighteen, article twenty-two, chapter
twenty-nine of this code shall mature at such time or times not
exceeding ten years from their respective dates: Provided further,
That revenue bonds issued on or after January 1, 2008, which are
secured by lottery proceeds from section eighteen or eighteen-a,
article twenty-two, chapter twenty-nine of this code, shall mature
at such time or times not exceeding twenty years from their respective dates.

(b) The bonds shall be signed by the Governor, his or her
designee or the vice chair of the authority, under the great seal
of the state, attested by the Secretary of State, and the coupons
attached to the bonds shall bear the facsimile signature of the
Governor, his or her designee or the vice chair of the authority.
In case any of the officers whose signatures appear on the bonds or
coupons cease to be officers before the delivery of the bonds, the
signatures shall nevertheless be valid and sufficient for all
purposes the same as if the officers had remained in office until
the delivery. The revenue bonds shall be sold in the manner
determined by the authority to be for the best interests of the
state.

(c) Any pledge of revenues made by the School Building
Authority for revenue bonds issued prior to July 20, 1993, pursuant
to this article is valid and binding between the parties from the
time the pledge is made; and the revenues pledged shall immediately
be subject to the lien of the pledge without any further physical
delivery of the revenues pledged or further act. The lien of the
pledge is valid and binding against all parties having claims of
any kind in tort, contract or otherwise, irrespective of whether
the parties have notice of the lien of the pledge and the pledge
shall be a prior and superior charge over any other use of the
revenues pledged.

(d) The proceeds of any bonds shall be used solely for the purpose or purposes as may be generally or specifically set forth
in the resolution authorizing those bonds and shall be disbursed in
the manner and with the restrictions, if any, that the authority
provides in the resolution authorizing the issuance of the bonds or
in the trust agreement referred to in this section securing the
bonds. If the proceeds of the bonds, by error in calculations or
otherwise, are less than the cost of any projects specifically set
forth in the resolution, additional bonds may in like manner be
issued to provide the amount of the deficiency; and unless
otherwise provided for in the resolution or trust agreement
hereinafter mentioned, the additional bonds shall be considered to
be of the same issue and are entitled to payment from the same
fund, without preference or priority, as the bonds before issued
for the projects. If the proceeds of bonds issued for the projects
specifically set forth in the resolution authorizing the bonds
issued by the authority exceed the cost of the bonds, the surplus
may be used for any other projects authorized in accordance with
the provisions of section sixteen of this article or in any other
manner that the resolution authorizing the bonds provides. Prior
to the preparation of definitive bonds, the authority may, under
like restrictions, issue temporary bonds with or without coupons,
exchangeable for definitive bonds upon the issuance of the
definitive bonds.

(e) After the issuance of any revenue bonds, the revenues
pledged for the revenue bonds shall not be reduced as long as any of the revenue bonds are outstanding and unpaid except under the
terms, provisions and conditions that are contained in the
resolution, trust agreement or other proceedings under which the
revenue bonds were issued.

(f) The revenue bonds and the revenue refunding bonds and
bonds issued for combined purposes, together with the interest on
the bonds, are exempt from all taxation by the State of West
Virginia, or by any county, school district, municipality or
political subdivision thereof.

(g) To meet the operational costs of the School Building
Authority, the School Building Authority may transfer to a special
revenue account in the State Treasury interest on any debt service
reserve funds created within any resolution authorizing the issue
of bonds or any trust agreement made in connection with the bonds
for expenditure in accordance with legislative appropriation or
allocation of appropriation.

(h) Any school construction bonds issued under this section
shall be issued on parity with any existing School Building
Authority bonds previously issued under this article.

Note: WV Code updated with legislation passed through the 2015 Regular Session
The WV Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.